EU Paysites and VAT
 

Do EU based paysite businesses have to charge VAT to EU customers?

:helpme

You are based in the EU , you have tocharge the VAT to all EU customers, but not to non-EU customers.

You are based outside the EU, using a EU processor, you charge no VAT nowhere.

According to this article, businesses anywhere in the world have to charge VAT for their EU customers:

http://www.internetnews.com/ec-news/article.php/2194111

I use a EU biller . They split the signups by origin :

EU
Non EU
Canada ( my place )

They don't charge any taxes. When they make their invoice for their fees, they also do not charge any taxes ...

They are BIG , but I hope they know what they are doing ....

Scary article ....

BTW, what does the non-EU company do with the taxes collected ? Remit them to each government...

Webmaster = taxman

I dunno

I've read that article and many others like it, and it all makes no sense to me.

Mind sharing which EU biller you are referring to?

I think it's been like this since 2003/01 or so. Companies in the US for example must pay sales tax on any digital items they sell to EU customers. To which tax entity in EU they choose (different rates, upto 25%).

We with EU companies must adon the sales tax for the country we are present on each EU purchase. Either higher price or less profit.

This is really a legal situation that needs a couple of test cases.

If you buy physical goods outside the EU and get them imported then you have to pay VAT. If you buy something within the EU from a company registered within the EU then you should pay VAT (though there is the possibility that is isn't visible).

BUT. If your with in the EU and you purchase goods or services that never enter the EU... what happens then? people can only really speculate as as far as I know there has been no legal cases to set the presidence

I seriously doubt any US companies (or other non-EU companies) are paying the VAT that the EU says they have to pay.

I don't think many do or even know about this really. But i think it's on trial for some years now. Possibly will be some major courtcases like Amazon.com and such big sellers which can't escape the taxes today.

You mean like i purchase some pics in the us, download to my us server and use the there only or something. They will tell you to pay the tax in which your company is. If it's a EU owner for a US company then it probably will be tricky and you wouldn't need to pay the tax.

fuck VAT

What happens if a webmaster in the EU buys a banner advertising on a US website?

Is that US website supposed to pay VAT?

Acutally I belive the US' view is, we don't give a fuck about other people taxes and they can sort it out at their customs

No... why should it?

because the person buying it was in the EU

http://www.internetnews.com/ec-news/article.php/2194111

I don't quite grasp how you can had an EU owner of a US company

Anyone in the world can own a company based in the US

seems completly uninforcable to me

yes, but then is would just be a US company, a US entity, the fact that someone from the EU is a main stake holder should be irelivant.

sorry about my pervious comment, it's pretty obvious how someone in the EU can own a US company... I've had a few too many EU beers

webmaster=company and not end consumer. I think it's a difference.

When i purchase stuff for my company like hosting, scripts etc from non-eu country i don't pay sales tax and the seller don't care about it either and it's ok.

I agree

well no, stricly it's illegal. so it's no OK. But no one really understand how to deal with this. so we really need some good test cases to set the presidence.

Special scheme concerning VAT


From 1st of July, 2003, there is a special scheme concerning VAT on electronic services. The special scheme is applicable for companies outside the European Union that sell services to non-taxable persons (private persons) within the Union. Electronic services are those services that are supplied directly to the costumers computer, i.e. web-site hosting, downloaded music or software, information, pictures etc. The special scheme facilitate complience with fiscal obligation for these companies.

http://www.skatteverket.se/e-tjanste...ndel/main.html

Wouldn't this mean that a company like Monster would have to charge VAT to EU customers?

www.monster.co.uk

www.monster.ie

They should be anyway. They're a UK (and Ireland company) so should be paying and charing VAT (unless off course they aren't VAT registerd).

Also.. they might not be an UK company and just have UK domain names.... then this comes under other law that also haven't been tested yet

Monster is a US company, they just have offices in Europe